Owing to disruptions in labour and supply chain due to the resurgence of Covid-19 in many parts of the country, the solar industry is asking for an extension of four months on all ongoing projects from the government.
A statement issued by the National Solar Energy Federation of India (NSEFI) said – “Owing to the continued rise in COVID-19 cases and a re-surge in many parts of the country, solar power projects continue to face implementation issues due to the absence of Government officials, lockdowns, slow processes due to understaffed office being overly busy and pre-occupied with pending works.”
The statement also added that if no extension is provided, some projects might lead to cancellations, the solar body said.It will lead to heavy liquidated damages to be paid by the developer on account of delayed project completion, or non-release of funds by financial institutions in absence of Financial Closure(FC) leading to extreme financial losses even for established players.
In august 2020, MNRE had granted a blanket extension of five months to all ongoing projects. This year, projects in states such as Rajasthan, Maharashtra, and Madhya Pradesh have seen complete or partial lockdowns, disrupting the ongoing construction.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
